The prime minister unveiled a new app on Friday, which allows direct digital transactions from all your bank accounts under one roof.
Prime Minister Narendra Modi on Friday launched a new digital transaction app called ‘BHIM’ (Bharat Interface for Money) in India, aimed at making it easier for smartphone and feature phone users to carry out cashless payments. Here are a few things you should know.
- The BHIM app uses the the Unified Payments Interface (UPI) technology, launched in India in April 2016. It’s a system that allows users to transact from accounts in various banks through one single app, even offering the possibility to shop in retail stores.
- UPI is different from similar apps like PayTM and MobiKwik, as it links directly to your bank account, while the latter are digital wallets that require you to transfer money to them.
- BHIM’s UPI system uses IMPS money transfer, meaning you’ll be able to carry out transactions 24/7.
- When you download the app, you’ll be asked to verify your mobile number that’s linked to your bank account. Of note is the fact that users with dual-SIM smartphones will need to have their bank-registered SIM card in the SIM 1 slot for this to work. Once verified, the app will present you with a list of your bank accounts linked to that mobile number, and you can select the options you want to use.
- Once that’s done, you’ll be asked to enter a UPI pin, a 4-digit security code that you’ll use for all transactions through the app. Unfortunately, the app currently seems to be malfunctioning, as it refuses to accept the pin as a valid one.
- Your payment address will be set to <mobile number>@upi by default, though you can change it and enter your name or nickname instead.
- Now that you’re all set up, you’ll see three options to ‘Send’, ‘Request’, and ‘Scan and Pay’. Both the Send and Request options require you to enter the payment address (see above) of the receiver or sender respectively. In case you’re not sure of the address, you can type it in and hit the ‘Verify’ button to send an SMS and confirm. Additionally, a separate set of options at the bottom let you view past and pending transactions, change your payment address, view your account balance, and even generate and share a QR code to easily receive payments.
- So far, the list of banks supported by the BHIM app includes: Allahabad Bank, Andhra Bank, Axis Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Catholic Syrian Bank, Central Bank of India, DCB Bank, Dena Bank, Federal Bank, HDFC Bank, ICICI Bank, IDBI Bank, IDFC Bank, Indian Bank, Indian Overseas Bank, IndusInd Bank, Karnataka Bank, Karur Vysya Bank, Kotak Mahindra Bank, Oriental Bank of Commerce, Punjab National Bank, RBL Bank, South Indian Bank, Standard Chartered Bank, State Bank of India, Syndicate Bank, Union Bank of India, United Bank of India, and Vijaya Bank. There’s currently a limit of Rs 10,000 per transaction, and Rs 20,000 within 24 hours, though that may change in the future.
- Another feature of the app, on the shop front is that, merchants can download the Aadhar cashless merchant app on their smart phones, connected to a biometric reader, which will be available for Rs 2000. The customer can then put their Aadhar number into the app, select the specified bank and the biometric scan will work as the password for the transaction.
- Lastly, you can find the BHIM app for Android here, though iOS users will have to wait to try out the new payment method.
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 "online transactions, online payment service, BHIM app, Narendra Modi, demonetization, cashless economy, latest smartphone apps")
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